Is Purchasing Flats In Mumbai Still Affordable?

  • Added:
    Dec 29, 2013
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Is Purchasing Flats In Mumbai Still Affordable? Photo by Umov  Mehta

Investing in real estate has always been regarded as a wise decision, especially when the investor is bound to earn a greater value in return over time. Any investment in major cities across the globe has always proved to be beneficial to the investor, as the demand for the property is bound to grow with time. The demand for residential and commercial property in Mumbai is the very same. Being conferred as the financial capital of India, and for its Bollywood factor, Mumbai continues to be one of the most populous cities in the country. Being a dream city that attracts not only Indian citizens, but also foreigners, Mumbai has garnered a special place in the heart of every individual, who has experienced this city in its true form.

With an existence that is leveraged by these factors, buying a home in this metropolitan city is a dream, that everyone nurtures from childhood, especially the ones who are born and brought up here. But, property rates in Mumbai have increased tremendously over the years. By analyzing the present market scenario, buying even a piece of land in this city can make your bank balance go haywire. Though the demands of the affluent class are well-maintained by the ultra-luxury residential projects that many developers cater to, the middle class segment of the society are still deprived the privilege of owning a suitable home in the financial capital.

With the reputation it holds and the over-priced demands of the sellers, buying flats in Mumbai is not very simple, especially during present times. As per the experts who monitor the real estate business, the demand for land has been growing, at a stable rate over the last four years. However, the over-priced values, especially on residential apartments has made aspiring home buyers shift their focus to neighbouring areas, which are a few meters outside Mumbai city. It is to be noted that the demand for luxury residential projects is growing at the rate of 35 percent every year, whereas the demand for regular residential homes is at 66 percent. As Thane and Navi Mumbai are located in close proximity to the city, their prices too have increased at about 70 and 74 percent respectively.

In spite of lack of clear space and its escalating value, the demand for property in Mumbai continues to be stable, since many are keen to buy a second home within the city limits. The investors bear a strong belief that the value of real estate in the city will always increase irrespective of the economy or any other significant factors. Analyzing the same, the real estate experts ensure that all of the real estate investments in the financial capital will always garner interest for its stable financial growth and demand. However, affordability will continue to be a matter of major concern for majority of the public in the city.

Author's Profile

Umov Mehta is a real-estate expert who researches on property rates in Mumbai and helps people to make smart long-term investment deals.

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